Energy Storage Workshop 07/12/2015

Transcription

1 Energy Storage Workshop 07/12/2015

2 Housekeeping Fire evacuation Toilets Phones Feedback Register in Reception UK Power Networks Hosts Asset Management Sotiris Georgiopoulos Matt White Dr José Barros Itayi Utah Connections Steve Halsey Kellie Dillon Strategy and Regulation Dr Panos Papadopoulos Adriana Laguna

3 Introduction, objectives, plan and background

4 Today s agenda Arrive from 09:00 to Colorado room, 6 th Floor after reporting to reception 09:15 Tea and coffee on arrival 09:30-10:00 Introduction, objectives, plan and background Steve/Sotiris 10:00-11:00 Learning from the SNS Project Panos 11:00-11:10 Short Comfort Break 11:10-12:00 Technical break-out sessions 2 groups (José/Panos, Matt/Sotiris) 12:00-12:10 Short Comfort Break 12:10-12:50 Commercial break-out sessions 2 groups (Sotiris/José, Steve/Matt) 12:50-13:00 Wrap-up and close 14:00-14:15 Feedback and next steps 4

5 Setting the scene Changing landscape Lessons learned Technical and commercial challenges Service Development Stakeholder engagement DG Customer Forum Niche workshops Incentive on Connections Engagement (ICE)

6 Energy Storage Installations in UK in 2014 (circa 15MW)

7 Energy Storage Applications in UK Power Networks 2015 EPN Apps Capacity (MW) LPN Apps Capacity (MW) SPN Apps Capacity (MW) Total:934MW

8 Our work in storage connections - Objectives Develop policies that can provide affordable and timely access to storage customers while developing an economically efficient distribution network for all customers Incorporate the lessons learnt from the solar boom in managing capacity and avoiding contracted bottlenecks Work with customers to get their input to shape the proposals in this complex topic

9 A phased approach Guidance for assessing storage applications End of 2015 Flexibility requirements for demanddriven constraints Q Exploring new flexible contracts 2016 onwards 9

10 Learning from the Smarter Network Storage

11 Use cases of Energy Storage are numerous Peak shaving Response Reserve Tolling Power Factor Correction Triad Arbitrage Portfolio Balancing Voltage Control Losses Reduction Local Area/ Community Energy Balancing

12 The Smarter Network Storage Project Partners Location: Leighton Buzzard Energy capacity: 10 MWh Suppliers Real power: 6 MW 13.2m LCN funding awarded in Nov m investment by UK Power Networks UK Power Networks/Innovation 12

13 An integrated business model to access maximum value Ownership / Operation Services / value streams Operations & dispatch Full operational control & override Optimised service selection Dispatched for ancillary services on instruction from Kiwi (National Grid) Tolling Option DNO (Eastern Power Networks plc) Energy Supply & Tolling Agreement CSA (Aggregator Services Agreement) Smartest Energy Smartest Kiwi Power e.g. Enhanced Frequency Control, Demand Turn Up Energy supply Distribution Services (Peak shaving, Reactive power, Voltage support) Wholesale Energy Market (buy & sell) Response Services Reserve Services New / Additional Services DNO 3 rd party Contract

14 The SNS core Business Case 3 rd circuit cost Total SNS cost Non-core/R&D Asset cost reduction 36% FFR and STOR each All values are Net Present Value, over a 10 year period; Discount factor used is 7.2%; Revenues based on 72% availability for commercial services, including c0.1% downtime for calibration Capex +Opex for 10 years GB system cost saving Design, Civils and Electricals Storage Opex (10 yr est.) Storage Capex 69% Stora ge 23% 9% 3% 14% 7% Design Civils Typical Civils Specific 7% 33% Electrical Typical Electrical Specific 25% Overheads UK Power Networks. 11% All rights reserved Landscaping

15 Sensitivity analyses Factors affecting the business case: Period of deferral of any conventional reinforcement Storage technology cost Market value of existing, and new, flexibility services procured by National Grid Level of availability for commercial services vs. network services Success in achieving TRIAD revenues Margins taken by operational partners (Aggregators and Supplier)

16 SNS Findings Based on the trials we have developed modelling assumptions Fixed and variable operational costs are 45k pa Aux consumption costs are 16k pa Storage is operated (& hence incurs revenues/costs) during and up to the deferral period only (i.e. not used for additional revenues post reinforcement) Hurdle rate is the 5.1m NPV cost of conventional reinforcement Discount rate 7.2% 30% of the year storage is needed to support the network

17 Scenario Modelling Scenario # Aggregator Fees Triad Revenues 1.STOR/FFR: Low Revenue a b c NO AVERAGE AVERAGE 2. FFR: High Revenue 3. FFR/EFR: Future Services a b c a b c NO AVERAGE AVERAGE NO AVERAGE AVERAGE STOR: Short Term Operating Reserve FFR: Firm Frequency Response EFR: Enhanced Frequency Response

18 Annual Revenues, k pa DNO owned and operated storage Range of fixed annual revenues and deferral periods necessary for storage to be equally competitive (i.e. break even) to the conventional reinforcement cost, for a range of storage system costs c 2.c 3.b 2.b 2.a 1.c 2.a 1.b SNS Storage Cost (2013) 10% reduction on Storage (System) Tech Costs 20% reduction on Storage (System) Tech Costs 30% reduction on Storage (System) Tech Costs 40% reduction on Storage (System) Tech Costs a Deferral Period (Lifetime), Yrs

19 In an ideal world..

20 In reality.. Networks are constrained Energy storage is a key source of flexibility The first step in exploring how we can facilitate cheaper and faster storage connections, is to understand the impact of storage systems in our Source: DG mapping tool networks Using learning from the SNS Project, we have investigated the usage of storage for the most profitable applications for third parties and the impact on our network

21 Different profiles depending on the service Arbitrage Balancing Services Response FFR SFR EFR Reserve (Short Term Operating Reserve-STOR) Triad

22 Arbitrage As arbitrage and other services based on energy prices are difficult to predict

23 Balancing Services Timeline

24 Frequency Response (Dynamic and Enhanced) - Deadband and High/Low Frequency thresholds agreed with National Grid for each provider - Typical parameters: FFR: i. Deadband: ±0.05Hz ii. Threshold: ±0.3Hz iii. Response time: <10s iv. Response period: 30s-30m EFR: i. Deadband: ±0.1Hz ii. Threshold: ±0.2Hz iii. Response time: <1s iv. Response period: 9s

25 FFR parameters used with 1 second response time

26 EFR parameters used with 1 second response time (higher deadband-less usage)

27 Not enough capacity Combined EFR/FFR: EFR parameters used with 30 minutes response period (no deadband control-not enough capacity, deadband control high utilisation)

28 Static FFR - Delivery only when frequency crosses high or low threshold - Response time: <10 seconds - Response period: 30mins - May be bidirectional service or single direction service Grid Frequency that triggers Frequency Response (both EFR/FFR) is also unpredictable

29 Real Static FFR event from November 2015 Grid Frequency State of Charge Event Active Power Export during event Active power output of the storage (orange line), grid frequency (purple line). The yellow line indicates the state of charge and the blue line the reactive power.

30 Short Term Operating Reserve A utilisation event occurred on the 27 th of August STOR has more defined windows however due to the uncertainty of dispatch, contracted export should be considered during the windows and full import in between (to re-charge and be available for next window)

31 Triad Avoidance 31

32 Possible operation regimes for battery storage 00:00:00 00:30:00 01:00:00 01:30:00 02:00:00 02:30:00 03:00:00 03:30:00 04:00:00 04:30:00 05:00:00 05:30:00 06:00:00 06:30:00 07:00:00 07:30:00 08:00:00 08:30:00 09:00:00 09:30:00 10:00:00 10:30:00 11:00:00 11:30:00 12:00:00 12:30:00 13:00:00 13:30:00 14:00:00 14:30:00 15:00:00 15:30:00 16:00:00 16:30:00 17:00:00 17:30:00 18:00:00 18:30:00 19:00:00 19:30:00 20:00:00 20:30:00 21:00:00 21:30:00 22:00:00 22:30:00 23:00:00 23:30:00 Example charge/discharge profile for TRIAD avoidance (6MW/10MWh) EXPORT IMPORT Power (MW) Energy (MWh) Power Energy -6-8 Effect of TRIAD avoidance profile on substation A Max. import limit Profile after battery storage Profile before battery storage Planning for Triad has a generally more predictable profile, however it is unlikely that an operator will be only scheduling for Triads during winter days 32

33 Technical Limitations to Enhanced Frequency Response - Protection; - Voltage regulation (compliance with Engineering Recommendations P28). Voltage step change 33kV site in EPN 4% 3% P28 limit 2% 1% 0% % BATTERY EXPORT (MW) -2% BATTERY IMPORT (MW) -3% P28 limit -4% 33

34 Typical winter day Cheap! SFFR Recovery Recovery -----SFFR---- constraint Dispatch Triad Export

35 Conclusions Different Services/applications-> Different Profiles For third parties, the uncertainty of energy prices and Transmission Network triggers (frequency), shows that storage could be dispatched to provide these services anytime. In constrained networks, this could lead to expensive connections. New flexible connections for Storage need the storage owner s input to understand the anticipated profile The value that a Storage developer may get from a flexible connection depends on the site and application

36 Technical Break-out Sessions

37 Additional information being requested to battery storage customers Objectives - Obtain information ahead of changes in the ENA form (we cannot change it unilaterally). - Understand customer requirements to allow us to consider updating our offering. Early indications - Most applications are for green/yellow areas of the generation heat map. This indicates the objective of obtaining a viable export connection. - Most applications are for standalone operation; - Most customers apply for symmetrical import/export requirements; 37

38 Summary of different customer requirements Customer requirement Triad avoidance EFR/ Full FFR STOR Any combination of, and Expected profiles Predictable Unpredictable charging/discharging charging/discharging profiles can be agreed. profiles. Predictability depends on the STOR contract agreed. To be analysed on a case by case basis. Network requirement Access to full export only required in specific times. Careful assessment required Access to full contracted export for at least two hours per day, 3 times a week, is required. To be analysed on a case by case basis. 38

39 Consistent Approach 1. Assessment of import and export requirements Agree import/export profiles (based on capacity / times depending on network availability) for different customer expectations (profiles to be reviewed on a agreed regular basis); 2. Offer a Flexible connection. Within flexible DG areas, interruptible connections are available where specific capacities / windows can not be guaranteed and curtailment risk lies with the customer. For the Walpole zone, we are minded to continue on this basis. 39

40 Possibilities for a consistent offering 3. Active Network Management Current focus of Flexible DG Connections is on managing constraints when they occur and not predicting them (i.e., dispatching customers on the basis of the constraints during a period of time). Technically local optimisation is possible via greater level of integration between UK Power Networks, National Grid and customer control systems: The scheme would require UK Power Networks will need to have direct influence on the customers charging and discharging; UK Power Networks sets upfront a optimisation scheme that, taking into account customer expectations, manages the access to the network on the basis of live (or near live) network operation. Which are the opportunities towards such a model that we can take which do not require any major regulatory or commercial changes? 40

41 Commercial Break-out Sessions

42 The Connection Offer getting a connection Planning submission Planning approval Start on site Completion 1. What is the /MW threshold for viability of a storage connection? 2. Existing connections designed on the basis of the technology on site, addition of storage might affect the profile and will be treated as material change 3. Introduction of new milestones specific to storage technology SO contract award such as EFR What other milestones can we introduce?

43 The Connection Agreement remaining connected Connection agreements which reflect 1. The services, operating profile that the storage developer has declared 2. The time period of the contract award introduce review point lined to SO contract (2 4) years Suitability of current flexible DG terms Fully interruptible backed by constraint modelling

44 Network support services UK Power Networks will be running a flexibility scheme in ED1. It will be used to shift demand to defer network reinforcement. We are agnostic to the type of the response however we understand that each type might have different characteristics. We are looking to give an indication on potential requirements/locations in 2016 for those who are interested to locate the storage schemes close to these locations in preparation.

45 Next Steps

46 Next steps Ongoing work on a complex topic We will continue to work closely with customers and the regulator DG surgeries can be used to discuss storage projects Next update in February s UKPN DG Forum

47 Please send any questions/feedback to: